Ann: Quarterly Report - June 2018, page-17

This is THE announcement...

In my entire time of investing in Galaxy this has got to be the best one I have seen.

Of course the US$85 million is great. ($114 million Aussie)

They delved into the details of the various assets and then POW!

They shared information about the market that should be inserted into every institutional research document.

THIS IS WHAT IS REALLY GOING ON!

Would/Should be the title..

I particularly liked this bit:

"China continues to reaffirm its position as the global leader in the adoption of New Energy Vehicles (“NEV”) and deliver on targeted production growth having achieved a 4.1% penetration rate of all newly manufactured
vehicles in May."



Then it followed with...

To be specific it is estimated that the total number of Battery Electric Vehicles (“BEV”) produced throughout these months wasc .249,000 vehicles, representing growth of 104% YoY

Then a little bit of detail of PHEV...

whilst total production of Plug-in Hybrid Electric Vehicles (“PHEV”) was c.76,000 vehicles, representing growth of 203% YoY.

Of course there were many highlights in this report along with details that I was not aware of.

@$$$$$$$$$$ if your jounalist would like to write about something, maybe they should read the details of the overall market shared in this report.

Before I go...

Here is the sucker punch that makes me think that we all of us might want to reconsider our pricing in the medium future at least....

the key pricing trend observed throughout the quarter was the convergence of the Chinese price for battery grade lithium salts and the rest of the world (“ROW”) price observed for the equivalent products. ROW pricing (c.US$16,000 – US$17,000/t for lithium carbonate, c.US$18,000 - US$19,000/t for lithium hydroxide) continued to grow to record levels throughout the quarter demonstrating the robust and maturing nature of the current market for lithium products.

As was observed in both 2016 and 2017 pricing is expected to recover strongly in H2 2018 in line with targeted NEV production volumes across the globe and a continued lag in the supply side response. Continued demand growth and the processing lag between new spodumene production, its conversion into chemicals and ultimate consumption within an end use application is expected to ensure the market balance remains tight within the foreseeable future, supporting a recovered pricing environment.



Great job Galaxy!

Whoever wrote this... Give them the rest of the week off...